Based on observational and cohort studies, hormone replacement therapy has the potential to decrease a postmenopausal woman's cardiovascular risk by as much as fifty percent, however the effects of estrogen replacement on cardiovascular risk factors in a diabetic population, a population at especially high risk, have not been carefully studied. The purpose of this pilot study is to assess the effect of hormone replacement therapy on the modification of lipid status, hemostatic variables and cardiovascular performance in postmenopausal diabetic women. It is hypothesized that hormonal replacement will have a favorable effect on the lipid profile, enhance fibrinolysis and cardiovascular performance with improvement in overall left bentricular systolic and diastolic function.